Consumers Energy to Receive $100 Million Federal Grant for Grid Modernization

(October 18, 2023 5:27 PM ET) The U.S. Department of Energy today selected Consumers Energy to receive $100 million to strengthen Michigan’s electric grid. Consumers Energy says the grant “represents a huge next step to bolster the company’s Reliability Roadmap to reduce the number and length of power outages across the state.”

Consumers Energy will use the federal funding to strengthen the backbone of its electric system in disadvantaged communities – where the most investment is needed to limit outages. Consumers Energy will replace more poles and equipment, plus add the latest technology to detect and respond to outages.

“Building a stronger grid to withstand Michigan’s fiercest weather is our top priority. We are thrilled the Department of Energy recognizes and is willing to support our plan to keep the lights on 24/7 for our nearly 2 million customers,” said Tonya Berry, Consumers Energy’s senior vice president of transformation and engineering. “We consider this a $100 million down payment on our Reliability Roadmap.”

Consumers Energy announced its Reliability Roadmap last month. The blueprint to strengthen Michigan’s electric grid includes two long-term goals:

•      No customer will be without power for more than 24 hours.

•      No outage will affect more than 100,000 customers.

In June, the Michigan Public Service Commission approved Consumers’ plans to seek the grant from the Department of Energy.  The new federal funding will help Consumers Energy accelerate that long-term plan and ultimately reduce costs to customers. The funds come through the Grid Resilience Utility and Industry Grants program to support the modernization of the electric grid to reduce impacts due to extreme weather and natural disasters. Consumers Energy will match the spending with another $100 million once the grant is finalized and the work is done over time.

Berry highlighted the importance of the new funding to support equity and environmental justice, which is a stated goal of the Reliability Roadmap.

“Consumers Energy has made a commitment that all communities will experience the benefits of our work to better serve Michigan and participate in the clean energy transformation,” Berry said. “We are excited to communicate with leaders and stakeholders in communities that will most directly see the results of our efforts.”